Barton Company has a line of credit with Sea View Bank. Barton can borrow up to $200,000 at any time over the course of Year 2. The following table shows the interest rate expressed as an annual percentage along with the amounts borrowed and repaid during the first three months of Year 2. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. Amount Borrowed/(Repaid) Annual Interest Rate Month January $25,000 6% February (5,000) 9% March 20,000 9% Which of the following shows how the interest expense recognized on March 31, Year 2 would affect Barton's financial statements? Balance Sheet Income Statement Statement of Exp. = Net Inc. Cash Flows A. Assets = (300) = (300) - (300) FA Liab. + Equity Rev. + (300) (300) + (150) B. (300) (300) 300 300 150 + = = = (300) OA C. (150) = (150) (150) FA D. (150) = + (150) 150 = (150) (150) OA T RESE S